Ex-Citibank Worker Gets 16-Month Jail Sentence After Stealing $166K From 79-Year-Old With Dementia

A Manhattan Citibank personal banker took advantage of an elderly man with dementia, stealing over $150,000 of his hard-earned money. The banker used some of the stolen funds to indulge in a luxury Harley-Davidson motorcycle.

Juan Velez, 35, of Hoboken, NJ, could have spent up to 15 years behind bars for his crime. However, prosecutors said he managed to negotiate a plea deal that reduced his sentence to six months in jail, which he began serving on Tuesday.

Velez, a personal banker on the Lower East Side, confessed to a year-long scheme to steal $166,000 from a 79-year-old client. He used the stolen money to pay off his credit cards and buy a Harley-Davidson motorcycle.

Local Case Highlights The Dangers Of Financial Fraud

Concerned about his finances, the victim visited the Citibank branch multiple times a week to speak with Velez. However, Velez, who was secretly stealing from him, blamed the elderly man's frequent visits on his memory issues.

Velez's elaborate scheme involved creating fake accounts, impersonating the elderly man, and transferring the victim's money to himself. The former banker was arrested in May - a month after his last illegal transaction.

Manhattan District Attorney Alvin Bragg encouraged elderly individuals who believe they have been victims of financial fraud to reach out to his office's Elder Abuse Unit. "Today, Juan Velez is facing accountability for abusing his position as a personal banker to steal from a 79-year-old man suffering from dementia," Bragg said in a statement.

"We are committed to protecting older New Yorkers from fraudsters who target their well-earned savings," he added.

Under the plea agreement, Velez will be incarcerated for six months, followed by a five-year probationary period. He will also be required to surrender his motorcycle and make financial restitution to Citibank.

Tips to Prevent Elder Financial Fraud

The City National Bank has shared six tips to protect your elderly loved ones from financial fraud and prevent such tragic incidents.

1. Educating The Elderly

Initiating open conversations about scams is essential to protecting elderly loved ones from financial fraud. Many seniors may be vulnerable to isolation and more susceptible to engaging with strangers.

Educate them about common scams and their red flags, such as unsolicited requests for personal information. Encourage them to seek advice from trusted individuals or their financial institutions if suspicious activity occurs.

2. Safeguarding Finances

As individuals age, creating a comprehensive financial management plan becomes crucial. This plan should involve a detailed inventory of all assets and accounts to identify potential vulnerabilities for scammers.

Simplifying financial matters by consolidating accounts can enhance security and make it easier to monitor for suspicious activity.

3. Vigilant Monitoring

Elderly individuals or their caregivers should regularly monitor bank accounts, credit card activity, and credit reports for any signs of fraud. Utilising online banking tools can facilitate efficient monitoring of financial transactions.

Any suspicious or unauthorised activity should be promptly reported to the respective financial institution.

4. A Constant Reminder

Even after initial discussions about financial fraud, it's essential to maintain open communication with ageing parents and grandparents. Regularly monitor their accounts and be aware of potential red flags, such as unexplained withdrawals, missing personal items, or changes in behaviour that may indicate undue influence or exploitation.

5. Safeguarding information

Educate elderly adults about the importance of protecting their personal information. Advise them to avoid sharing sensitive details such as account numbers, Social Security numbers, passwords, or driver's license information with unsolicited callers.

Be cautious of vendors or companies that request personal information without a clear business need. Encourage them to question the necessity of such information and take their time when making financial decisions.

In April, a UK senior was nearly scammed by a Nigerian posing as Gary Barlow. Urgent deadlines often indicate potential scams. Finally, proper disposal of documents containing sensitive information is essential to prevent unauthorised access.

6. Power Of Attorney

When considering granting power of attorney to another individual, elderly adults should proceed cautiously. While this can be beneficial in case of illness or incapacity, it also grants significant financial and medical decision-making authority.

Carefully evaluate the potential risks and benefits before appointing someone as your power of attorney.